MTR to invest and increase production capacity

MTR to invest and increase production capacity

On Tuesday, MTR Foods with the plans to boost its production capacity, announced that the company will invest Rs.200 crore in the next two to 5 years

The Dollar Business Bureau

MTR Foods, on Tuesday, announced that it plans to increase production capacity and will invest Rs.200 crores in the next two to five years.

The company also announced the opening of its new e-commerce platform where customers will have access to its entire products. It has invested Rs.50 lakh to build its own online presence—this platform is available only for Bengaluru customers. At present, MTR products are available at e-commerce platforms such as Bigbasket and Grofers. 

The CEO of MTR Foods, Sanjay Sharma, said that additional investment is required for the growth of the company. He added that with the help of high-quality infrastructure and state-of-the-art equipment, the company is planning to increase its capacity from 45,000 tonnes to 72,000 tonnes.

Orkla, a Norwegian conglomerate, one of Norway’s largest listed companies, acquired MTR foods in 2007, when the company's total capacity was somewhere between 18,000 and 20,000 tonnes. But within nine years, its production capacity reached a new height of 45,000 tonnes.

By 2020, the company plans to achieve Rs.2000 crore turnover, against its current turnover, which is Rs.700 crore. This means the company has to maintain a consistent annual growth rate of 18%. 

Its export contributes to 10% of the revenue, with ready-to-eat products as the largest part of its exports. The company's biggest export market is the US, accounting for 45-50% of its total exports; other international markets include Canada, Australia, Middle East and New Zealand.

Speaking of its domestic presence, its main market is Karnataka, which accounts for 45-46% of its business. Andhra Pradesh and Telangana together contribute to 18-20%, followed by the rest of the states in the country.

Sharma said that the company’s growth strategy includes distribution, innovation, operations and manufacturing. Concurring to its objective, the company has also launched a new brand with its brand logo, emphasising on being relevant in the packaged food industry.


Related Topics:
The Dollar Business Bureau - May 04, 2016 12:00 IST